Common Auto Insurance Terms You Need To Know

• Auto Replacement: This benefit pays you back what you paid for an auto, and not what the auto is worth at the time of claim, or its depreciated value.
• Bodily Injury Liability Coverage: The first two amounts in liability coverage limits. It pays for expenses you are liable for when at fault for an accident. These include only bodily injury liability coverage expenses such as medical bills, pain and suffering, physical therapy, long term care services and funeral costs.
• Collision Coverage: This type of auto insurance coverage pays for damage resulting from a collision. Once you pay the deductible amount, your auto insurance company covers repairs that need to be made to your vehicle due to the collision, regardless of fault.
• Comprehensive Coverage: Comprehensive coverage covers most types of damage to your vehicle from non-collision sources such as fire, theft or vandalism.
• Deductible: The amount you must pay to your auto insurance company before your auto insurance coverage kicks in.
• Medical Payments Coverage: Covers Medical expenses not covered by personal injury protection.
• Property Liability Coverage: Protects you by providing liability coverage if you are at fault for an accident. It covers property damaged in the accident, but not your own property.
• Personal Injury Protection: Covers your medical expenses and some lost earnings due to an auto accident.